Drugmaker Covidien to Sell Pharma Business for up to $4B

Covidien has hired JP Morgan to handle the potential sale of its drugs business, and the deal could be worth up to $4 billion.

Covidien, a maker of surgical products and drugs, is seeking to sell its pharmaceutical business for up to $4bn, with the help of JP Morgan, according to Bloomberg.

Discussions with a healthcare company over the sale of its drug unit have recently broken down, although other potential buyers are still interested, sources close to Covidien have said.

Covidien's pharma unit achieved sales worth $1.99bn in the 12-month period ending September 2010, although the company's medical-products line is still its largest area of business.

In a strategy outlined in March, outgoing chief executive officer Richard Meelia said that Covidien would in